MICROSTRATEGY FIRST TIME ADMITTING THEY MAY SELL $BTC IN AN EMERGENCY

🔸MicroStrategy CEO Phong Le confirmed they may sell a portion of the 649,870 BTC if they find themselves in an extremely tight financial situation to protect shareholders.

🔸This is in stark contrast to the "never sell" philosophy of Chairman Michael Saylor and demonstrates that previous skepticism regarding this claim has some basis.

🔸CEO Phong Le stated they will only sell BTC when two conditions occur:

➤ The market value of MicroStrategy is below the value of the BTC they hold (mNAV below 1x)

➤ The company cannot raise additional capital through stock issuance or debt borrowing.

🔸MicroStrategy has to pay about 750 to 800 million USD in preferred dividend payments each year, which they previously funded through stock issuance, but now the stock price has dropped significantly making this method more difficult. MicroStrategy's stock operates similarly to a leveraged Bitcoin ETF.

🔸This means the likelihood of MicroStrategy selling BTC randomly is low, but if they are forced to sell, the market at that time will almost certainly be in a state of extreme panic, and the selling pressure will worsen the situation.